Chapter 1 slides from BUSN 7th edition. Marcella Kelly; Jim McGowen; Chuck Williams © 2015 ISBN: 1285187822 Publisher: Cengage

2. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1
Define business and discuss the role of business
in the economy
Explain the evolution of modern business
Discuss the role of nonprofit organizations in the
economy
Outline the core factors of production and how
they affect the economy
Describe today’s business environment and
discuss each key dimension
Explain how current business trends might affect
your career choices
2
1-1
1-2
1-3
1-4
1-5
1-6
Business Now: Change is the Only
Constant

3. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Organizational Change
￭ Successful firms embrace change
 Seek opportunities and avoid pitfalls
 Carefully evaluate risks
 Understand market and adhere to ethical
practices
 Generate long-term profits by delivering
unsurpassed value to the customers
• Value: Relationship between the price of a good
or a service and the benefits it offers

4. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Business Basics: Putting It All in Context
￭ Business: Organization or activity that
provides goods and services in an effort
to earn a profit
￭ Profit: Money earned in sales/revenue,
minus expenses
￭ Loss: When expenses are greater than
revenue

5. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Business Basics: Putting It All in Context
￭ Entrepreneurs: People who risk their
time, money, and other resources to
start and manage a business
￭ Standard of living: Quality and
quantity of goods and services available
to a population
￭ Quality of life: Overall sense of well-
being

6. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Evolution of Modern Business
Industrial Revolution
Entrepreneurship Era
Production Era
Marketing Era
Relationship Era

7. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
7©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Nonprofits
￭ Business-like establishments that
employ people and produce goods and
services
 Aim to contribute to the community rather
than generating financial gain

8. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
8©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Building Blocks of Production
￭ Factors of production: Fundamental
resources required to achieve
organizational objectives
 Natural resources
 Capital
 Human resources
 Entrepreneurship
• Aids economy by creating opportunities and by
harnessing other factors of production

9. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
9©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Business Environment
￭ Setting in which business operates
￭ Makes critical difference in whether an
economy thrives or disintegrates

10. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 1.1 - Business Environment
10

11. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
11©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Leading Edge Versus Bleeding Edge
￭ Speed-to-market: Rate at which a firm
transforms concepts into actual products
 Key source of competitive advantage
￭ Bleeding-edge firms - Launch products
that are too far ahead of the market
￭ Leading-edge firms
 Offer products as the market becomes ready
to embrace them

12. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workforce Advantage
￭ A key resource for firm’s competitive
advantage
￭ Research suggests:
 Investing in worker satisfaction yields
tangible, bottom-line results
￭ Cultivating human resources allows to
compete as the market for top talent
tightens

13. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
13©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Business Technology
￭ Tools used by businesses to become
more efficient and effective
￭ World Wide Web: Allows computer
users to easily access and share
information on the Internet
￭ e-commerce: Business transactions
conducted online, typically via the
Internet

14. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
14©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Social Environment: Demographics
￭ Measurable characteristics of a
population
 Population size and density, age, gender,
race, education, and income
￭ Reason behind difference in social
environment of various countries

15. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Social Environment
Diversity
Aging population
Rising worker expectations
Ethics and social responsibility
15

16. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
16©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Environment
￭ Free trade: International political
economic movement designed to help
goods and services flow more freely
across international boundaries

17. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
17©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Environment
￭ General agreements on tariffs and
trades (GATT): International trade
agreement that lowers tariffs and
promotes free trade worldwide
 Lowered prices and increased quality across
product categories

18. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Web-link: Free Trade Helps Reduce Poverty
￭ Web-link presents the highlights of a
study which indicates that free trade
enables economic growth and helps to
alleviate poverty
18
http://www.wto.org/english/news_e/pres00_e/pr181_e.htm

19. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
19©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Global Environment: Multi-Pronged Treats
￭ War and terrorism
 9/11 attacks decimated the travel industry
￭ Disease
 SARS flu affected the economies of Hong
Kong, Beijing, and Toronto
￭ Natural disasters
 Indian Ocean tsunami wiped out the fishing
industry on the Indian and Sri Lankan
coastlines

20. Reality TV Video Slide
20©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
www.cengage.com/introbusiness/book_content/9781285

21. © iStockphoto.com / DNY59
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
￭ Which factors of production
natural resources, capital, human
resources, and entrepreneurship 
are especially important for the
future success of Earth Class Mail?
Explain why these factors are
essential.
￭ How do the dimensions of the
business environment affect the
ability of Earth Class Mail to rapidly
scale up its operations? Explain your
answer.
21

22. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
22©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Business and You
￭ Both, broader economy and individual
business skills influence the level of
financial success
￭ Entrepreneurship as a career choice
requires following individual passion
 Boosts chances of both financial and
personal success

23. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
23©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Contemporary Business Scenario
￭ Complex, global, and rapidly changing
￭ Complete impact of the global economic
crisis remains unclear
￭ Technology continues to change the
business landscape
￭ New focus on ethics and social
responsibility transforms the role of
business in society

24. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Define business and discuss the role of business
in the economy
Explain the evolution of modern business
Discuss the role of nonprofit organizations in the
economy
Outline the core factors of production and how
they affect the economy
Describe today’s business environment and
discuss each key dimension
Explain how current business trends might affect
your career choices
24
1-1
1-2
1-3
1-4
1-5
1-6